Thermo Fisher Scientific (TMO) is trading at a new all-time high after the company beat fourth quarter estimates and gave strong guidance for fiscal 2018 this morning.
Thermo Fisher is a life sciences company that offers supplies for medical companies. It provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacturing, analysis, discovery, and diagnostics in the scientific and healthcare sectors. Thermo Fisher has been acquisitive and benefits from the long-term secular growth expected in the life sciences industry.
Fourth quarter revenue grew 22% to $6.05 billion while organic sales rose 8%, up from 5% growth in the third quarter. Fourth quarter adjusted EPS increased 16% to $2.79.
Life Sciences Solutions Segment revenue grew 11% to $1.58 billion. Analytical Instruments Segment revenue grew 16% to $1.41 billion. Specialty Diagnostics Segment revenue grew 10% to $0.91 billion Laboratory Products and Services Segment revenue grew 43% to $2.40 billion, including the acquisition of Patheon in late August 2017.
On the call, management guided for fiscal 2018 adjusted EPS of $10.68-10.88 with revenue up 12.7% at the midpoint to ~$23.42-23.72 billion. Top and bottom line guidance were modestly higher than Wall Street estimates.
What's more, the company raised its quarterly dividend 13% to $0.17/share.
The company also announced $50 million in investments due to tax reform, including a $500 bonus for 68,000 non-executive employees and $16 million in R&D and philanthropic programs.
Thermo Fisher has a $90 billion valuation and trades at just over 20x earnings.